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Gary Kaminsky Weighs In On The Markets Under Trump

December 4, 2016 2:59 pm
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After pulling out a largely unexpected win, the markets reacted big league to what a Trump administration could possibly mean for banks, U.S. industry and Wall Street.

On Thursday's edition of Benzinga's PreMarket Prep morning show, Gary Kaminsky, former vice chairman of Morgan Stanley (NYSE: MS), gave his thoughts on how the market has anticipated Trump White House policy. "What's happened since the election is you're pricing in almost every possible policy change that this administration will be able to put in place in the first 18 months."

However, Kaminsky sees some of the market reaction as overestimating the immediate impact of any deregulation, "We are way ahead of ourselves in the short term with the benefits of the interest income that have been priced to all of these stocks. Specifically with regard to financial institutions, while they’re going to benefit dramatically from the changes in regulation."

To Look Forward, Look Back

Looking ahead, Kaminksy advises looking back at where investors were on November 8. "A lot of those tax losses in the energy space, that existed a month ago, are gone," he said. "There's a lot of repositioning now in terms of trying to be so-called tax efficient."

While Wall Street anticipates deregulation, Kaminsky cautioned investors to be aware of how money managers performed prior to the election and what that could mean for the market at large, "Going back to periods like pre-2008 or pre-2000, you have such a significant tilt of people [who] get paid to actively manage money being so underweight the benchmark in the financials, in the industrials, in energy spaces."

Click here to listen to the full discussion.

PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to the show live every morning from 8–9 ET here, or catch the podcast here.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

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